The problem in the US is not ONLY taxes. It is a plethora of items that have had a result of penalizing “Productivity” in the United States relative to what we could be producing.
Regulations, whether environmental or product safety or ‘protective’ for one industry or another, reduce productivity via artificial constraints. If I wish to buy a ladder that is a little rickety, then so be it.
That is tied up with our incredibly legalistic barriers to increased productivity. When there are more lawyers than engineers, that indicates a problem in itself with respect to productivity. Lawyers slow productivity, indisputably.
Our taxation structure is a barrier to increased productivity. That barrier is much lower in many ways in many countries in the world. The way depreciation of capital is allowed in the US tax code is only one of those problems, but is a stark difference.
A specific item is that we have forced atomic power plants out of business in this country, and are attempting to do the same with coal. Indisputably, these are the most productive methods of generating electricity with the exception of hydropower, which is essentially constrained by nature. Similarly the US has placed barriers on oil and gas production which has lowered productivity in that realm.
Any higher taxation lowers the likelihood capital will be invested, and lowers productivity gains.
Our welfare system encourages lower productivity. When people are able to eat without ever considering working, that is a problem. That goes for many other programs.
The size of government at all levels decreases productivity. Those bureaucrats with very few exceptions add nothing to productivity.
IF the US would start focusing on allowing our business and technologists to increase the US productivity whole hog, we could again be the leader in world manufacturing due to our ability to harness technology. That would again allow our wages to balloon, since ultimately, wages (standard of living) are based on productivity.